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International Journal of Science and Research (IJSR), India Online ISSN: 2319-7064
Volume 2 Issue 6, June 2013
www.ijsr.net
A Comprehensive Relationship between Job
Satisfaction and Turnover Intention of Private
Commercial Bank Employees’ in Bangladesh
Md. Mizanur Rahman1, Md. Feroz Iqbal2
1Metropolitan University, Sylhet, Department of Business Administration, Bangladesh, Sylhet, 3100
2Community College of Philadelphia, PA- 19104, USA
Abstract: The main objectives of this paper are to find out the important factors which determine employees’ job satisfaction of
private commercial banks in Bangladesh and to show the relationship between job satisfaction and employees’ turnover. A total
number of 48 employees’ were selected from eight private commercial banks in Bangladesh. A structured questionnaire was designed to
collect the relevant information from the respondents. Empirical results reveal that job satisfaction and turnover happen due job
security, professional development, promotional opportunity, working autonomy, working environment, compensation package, and
financial benefits. The study also reveals that there is a strong relationship between job satisfaction and employees’ turnover at private
commercial banks in Bangladesh.
Keywords: Bangladesh, Employees, Private Commercial Banks, Job Satisfaction and Turnover
1. Introduction
There are about fifty local banks in Bangladesh. Most of
these banks are private commercial banks and specialized
banks except four nationalized commercial banks. The
environment of banking sectors in Bangladesh is fairly
competitive and they need to ensure the employees job
satisfaction to perform efficiently. The researchers have tried
to link employees’ job satisfaction and turnover intention.
Banking sector has witnessed a rapid growth in the last
decade and because of this growth, the demand for
experienced and skilled human resource has increased many
folds in this sector. For the same reason, recent academic
researches on job satisfaction and turnover intention in
Bangladesh also have focused on the banking sector.
Banking is the profession of dynamism, where always
involve challenge, hardworking, prestige and reputation. The
concept about the banking profession is changing day by day.
Now-a-days the existing bank employees and the potential
job candidates wants to seek such a bank, where he or she
feels comfort and proud. Every year a number of brilliant and
highly qualified graduates from home and abroad haveinvolved themselves as bankers of private commercial banks,
which is important for ensuring the quality of banking
service. But unfortunately there are some factors i.e., lack of
professional development and career development
opportunity, inadequate salary and benefits, bureaucracy in
administrative department and so on, that are causing
dissatisfaction and turnover among the employees of private
commercial banks. Meyer and Allen (1997) believe that the
relationship between human resource practices and employee
commitment should be examined more fully and improved
job satisfaction reduces the cost of staff turnover, builds
brand loyalty with staff and positions the company as an
employer of choice that attracts talented people to theorganization. It is essential for management to know the
satisfaction factors of their employees. The employees of
private commercial banks always compare their present
position of job and take decision to stay or turnover from his
position. Job satisfaction is the positive and negative attitude
towards the job of employee. There are some common
factors that always contribute directly and indirectly to the
employees mind to take the actual decision regarding the job
satisfaction and employees turnover, which are specially the
security of their existing job, compensation and job related
facilities, working environment & schedule, location of bank,
employee’s autonomy, career advancement opportunity,
performance appraisal process and evaluation, goodwill of the bank, working environment, working schedule, peers
relation among the employees etc. This study benchmarks
the relative forces that can interfere or influence the level of
job satisfaction and employees turnover tendency to arrive at
a reasonable or rational concept about the relationship
between job satisfaction & employees turnover.
2. Objectives of the Study
The fundamental objective of this research paper is to show
the relationship between job satisfaction and employees’
turnover in private commercial banks in Bangladesh. In order to achieve this objective, the following subsequent objectives
are considered
• To find out the factors, those determine job satisfaction of
the employees’ of private commercial banks.
• To find out the relationship between employees’ turnover
and job satisfaction.
• To find out the impact on employees’ turnover on quality
banking service.
3. Literature Review
3.1. Job Satisfaction
Job satisfaction is the degree to which individual feels
positively or negatively about their jobs. Graham (1982, p.
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International Journal of Science and Research (IJSR), India Online ISSN: 2319-7064
Volume 2 Issue 6, June 2013
www.ijsr.net
68) defined Job satisfaction as the measurement of one's total
feelings and attitudes towards one's job [1]. Hoppock (1935,
p. 47) defined, job satisfaction as any combination of
psychological, physiological, and environmental
circumstances that causes a person truthfully to say, ‘I am
satisfied with my job[2]. According to Newstrom and Davis
(1984) job satisfaction is a set of favorable and unfavorable
attitudes with which, employees view their work [3].
3.2. Turnover
Turnover intention is one’s behavioral intention to quit.
According to Bigliardi, Petroni and Ivo Dormio (2005)
intention to leave refers to individuals perceived likelihood
that they will be staying or leaving the employer organization
[4].
3.3. Relationship between Job Satisfaction and Turnover
According to McCormick and Ilgen (1985), there are many
previous researchers the support the relationship between job
satisfaction and turnover [5]. Mowday, Porter and Steers
(1982) also found that job satisfaction is consistently and
negatively related to turnover [6]. Schermerhorn, Hunt and
Osborn (2000) stated that job satisfaction can affect turnover
decision by workers to terminate their employment. They
also agreed that dissatisfied workers are more likely than
satisfied workers to quit from their job [7]. Muchinsky and
Tuttle (1979) summarized out of 39 studies of the
relationship between job satisfaction and turnover, 35 of it
indicate that the relationship is negatively related; many
studies conducted in different settings found a significant
negative correlation between the facets of job satisfaction and
turnover [8]. According to Moynihan, Boswell and Boudreau(1998) several studies found that negative work attitudes play
an important role in model of turnover [9]. Tett & Meyer
1993 mentioned job satisfaction will cause the turnover
cognition and the intention of employee to escape from work
environment. Moreover, two-meta analysis found that job
satisfaction and turnover are negatively related [10]. From
the above discussion we can say the relationship among
human resource practices job satisfaction and turnover
should be examined more fully and improved job satisfaction
reduces the cost of staff turnover, builds brand loyalty with
bank employees.
4. Methodology
The researchers have used both primary and secondary
sources for collecting the necessary data to conduct this
study.
4.1. Primary Data
Table 1: Name of the Banks No Areas A M F
1 Al-Arafah Islami Bank Ltd. 5 5 -
2 Commercial Bank of Ceylon 7 6 1
3 Pubali Bank Limited 7 7 -
4 The City Bank Ltd. 5 4 1
5 Dutch–Bangla Bank Ltd. 3 3 -6 Social Islamic Bank Ltd. 10 10 -
7 The Trust Bank Ltd. 5 3 2
8 United Commercial Bank
Ltd.
6 4 2
Total 48 42 6
Percentage 100 87.5 12.5
To find out the influencing factors relating to job satisfaction
and turnover, ten important factors have been considered as
independent factors and only one factor is considered as
dependent factor. These ten factors are rated by Five Points
Likert type Scale. To verify the collected data relating to
influencing factors several statistical analysis and tests i.e.,descriptive analysis, and hypotheses testing were conducted.
Hypothesis testing includes Chi-Square test, ANOVA, and Z-
test
4.2. Secondary Data
Banks’ websites, periodicals, Bangladesh Bank’s
publications, newspapers are used as the secondary sources
of the study. A list of related articles from various journals is
also used to develop the basic idea about the particular topic.
4.3. Hypothesis Testing
Data are analyzed through hypothesis testing including Z-
test, descriptive analysis. Hypothesis those will be tested are-
Hypothesis-1= The factors of job satisfaction have no impact
on employee turnover.
Hypothesis-2= There is no relationship between job
satisfaction & employees turnover.
Hypothesis-3= Employees turnover has no impact on private
commercial banks
The hypotheses of the study were formulated in terms of null
hypotheses and alternative hypotheses. The data got from thequestionnaire had responses supporting either H0 (null
hypotheses) or H1 (alternative hypotheses). The researcher
also decided to use Z-test, because, our sample size is more
than thirty.
The formula of ,
Here,
Z=Calculated Z value
x=No. of sample success (No. of respondents supporting H0
n=Sample size,
P=Hypothesized population (Probability for H0 Acceptance)
σP= Standard error of the population.
The level of significance for the test is 95%. This makes the
tabulated Z to be ±1.64.
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5. Limitations of the Study
Some important mentionable limitations of this paper are
given below
5.1. The researchers have collected data only from Sylhet
region. So the study does not cover the whole scenario
of job satisfaction & employees turnover of all private
banks in Bangladesh.
5.2. The ratio of female respondents is comparatively lower
than the total respondents. Here the percentages of
female respondents are 12.50 %. So it difficult to know
the actual trend of female employees job satisfaction
and turnover intention.
5.3. At the time of data collection, the researchers observed
that some respondents feel hesitate to provide actual
information about their job. So it may impact on actual
result of the study
6. Empirical Findings and Analysis
6.1. Descriptive Analysis of the Study
6.1.1. Basic Salary & Fringes Benefits
Basic pay usually refers to the pay received without taking
into account any additional benefits or bonuses. It may take
the form of cash, goods, or services, and may include such
items as health insurance, pension plans, and paid vacations.
Fringe benefits commonly include health insurance, group
term life coverage, education reimbursement, childcare and
assistance reimbursement, cafeteria plans, employee
discounts, personal use of a company owned vehicle and
other similar benefits.
Figure 1: Basic Salary & Fringes Benefits.
From the above figure we see that, 4.16% employees are
strongly satisfied with their basic salary & fringes benefits.
About 62.5% are satisfied with their basic salary & fringes
benefits. 29.17% of total respondents are neutral. 2.08% of
employees are both dissatisfied & strongly dissatisfied their
basic salary & fringes benefits which are given by his/ her
banks. By analyzing this data we can say that almost above
50% employees are satisfied with their basic salary & fringes
benefits which are provide by their banks. So the basic salary
and fringes benefits are not the main cause of turnover intention.
6.1.2. Job Security
Job security is the most important key factor relating to the
job satisfaction and employees turnover. Whenever
employees predict that their job is unsecured, then the
probability of turnover intention arise, which can impact on
the job satisfaction of employee.
Figure 2: Job security
From the above figure we see that, 6.24% employees are
strongly satisfied, 27.08% employees are satisfied, and
20.84% are neutral 37.05% are dissatisfied and 8.34%
employees are strongly satisfied about their job security
from the total 48 respondents. So it can be said that in terms
of job security the employees of private commercial banks
are not satisfied so job security is one of the important
influencing factors for employees’ turnover.
6.1.3. Location of the Bank
Location of the bank has an important impact on employee’s
job satisfaction. Location of a bank must be healthy and secure. A bank must be situated in a place where customer
and employee can communicate to each other easily.
Figure 3: Location of the Bank.
Here, 37.5% employees are strongly satisfied, 52.08%
employees are satisfied, and 2.08% are neutral, 8.32% are
dissatisfied about the job location from the total 48
respondents. So the turnover intention is very low due to the
location of the bank.
6.1.4. Employees Autonomy
Autonomy is the ability for employees to control their work situation. Employee’s autonomy is the degree or level of
freedom and discretion allowed to an employee over his or
her job. Autonomy has led to further gain in the concept of
professionalism, like autonomy in setting standards of
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International Journal of Science and Research (IJSR), India Online ISSN: 2319-7064
Volume 2 Issue 6, June 2013
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performance and autonomy is regulating terms and
conditions of employment (Clarke, 1995). The lack of
autonomy and self-control may the cause of dissatisfaction.
Figure 4: Employees Autonomy.
From the above figure we see that, only 2.08% employees are
strongly satisfied with their autonomy. About 25% are
satisfied with their autonomy16.67% of total respondents isneutral with their autonomy. 52.08% of employees are
dissatisfied & 6.25% are strongly dissatisfied their autonomy
which is given by his/ her banks. By analyzing this data we
can say that almost above 50% employees are satisfied with
their autonomy which is provide by their banks. So we can
say employee autonomy is one of the important factors to
switch the job from the private commercial banks.
6.1.5. Performance Appraisal & Evaluation Process
Performance appraisal means evaluating an employee’s
current or past performance relative to his or her performance
standards.
Figure 5: Performance Appraisal & Evaluation Process.
From the figure we see that, 9 employees (18.75%) are
strongly satisfied, whereas in 18 employees (37.5%) are
satisfied and 15 employees (31.25%) are neutral and the
percentage of non satisfied employees are 12.48% out of 48
employees. So Performance Appraisal & Evaluation Process
is not a big factor to change the job.
6.1.6. Working Schedule
Bank employees are highly satisfied with expected workingschedule but sometime they are take the extra duty. A bank
maintains maximum 8 working hours per day. From this
survey we are fund that, some bank are set to their working
schedule, but not maintain this schedule. Sometime bankers
are providing 2 or 3 hours extra duties rather than their
general working schedule. So, it can impact of the job
satisfaction of Employees.
Figure 6: Working Schedule
According to this figure, 03 employees (6.25%) are Satisfied
and no employees (0%) are strongly satisfied, while 5employees (10.42%) are neutral, 35 employees (72.92%) are
dissatisfied and 5 employees (10.42%) are strongly
dissatisfied about their working schedule from the total 48
respondents. So we can say for working schedule employees
of private commercial banks switch their job
6.1.7. Goodwill of the Bank
Goodwill of the bank is represents the actual brand image of
a bank. High goodwill increase the level of job satisfaction of
employee and low goodwill can decrease the level of job
satisfaction of employee.
Figure 7: Goodwill of the Bank.
From the figure we see that, 35.42% employees are strongly
satisfied, 58.32% employees are satisfied, and 6.24% are
neutral and none of them are dissatisfied about goodwill of
the bank. So we can say that goodwill of the bank has an
impact on job satisfaction. The dissatisfaction regarding the
goodwill of the bank may cause the turnover.
6.1.8. Working Environment
Working environment means the total working infrastructure
of the job. Favorable working environment increase the levelof job satisfaction of employee.
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Figure 8: Working Environment.
Here, (25% and 70.83%) are respectively strongly satisfied
and satisfied, while 2 employees (2.08%) are dissatisfied
their working environment from the total respondents.
6.1.9. Career Advancement Opportunity
The opportunity to advance employees careers within the
company is given by them.
Figure 9: Career Advancement Opportunity.
From the table we see that, 2 employees (4.16%) are strongly
satisfied, whereas in 10 employees (20.83%) are satisfied and
8 employees (16.67%) are neutral, 25employees (52.08%)
are dissatisfied and 6.25% are strongly dissatisfied. So we
can say for career advancement opportunity employees of
private commercial banks switch their job.
6.1.10. Peers Relation
Peers relation represents the employee’s attitude towards
their co-workers. The positive and negative peer’s
relationship among these employees can impact their job
satisfaction. Bank employees are satisfied when there is a
positive relationship with his or her co-workers.
Figure 10: Peers Relation
According to this figure 6 & 29 employees (12.48% and
60.42%) are respectively strongly satisfied and satisfied,
while 10 employees (20.83%) are neutral regarding their
peer’s relation.
6.2. ANOVA for Single Factor
6.2. Hypothesis: 1
H0=The factors of job satisfaction have no impact on
employee turnover.
H1=The factors of Job satisfaction have positive relationship
with employee turnover.
Table 2: ANOVA for Single Factor Source of
Variation
SS df MS F P-value F crit
Between Groups 33.22 9 3.69 5.6 1.72E-07 1.89
Within Groups 305.2
7
470 .649
Total 338.4
9
479
From the table we shows that, the calculated value of F (
5.684) , Which is higher than the table of F-crit ( 1.899) at 5
% level with df (degree of freedom).
At this time we must reject our null hypothesis and accept the
alternative hypothesis, the factors of Job satisfaction have
positive relationship with employee turnover.
6.3. Z Test
6.3.1. Hypotheses-2
Q. Do you think, “There is a relationship between job
satisfaction & employees turnover?
Table 3: Respondent’s Opinion
Nature of responses No. of responses Percentage (%)
Agree 36 75%
Disagree 12 25%
Total collected data 48 100 %
H0= There is no positive relationship between job satisfaction
& employees turnover.
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H1= There is a positive relationship between job satisfaction
& employees turnover.
From the table out of 48 respondents, 36 agreed that there is
a positive relationship between job satisfaction & employees
turnover. And only 12 respondents supported H0.
The calculated value of Z is ׀-3.47׀ and table value is .׀-1.64׀
(By using the formula of- Z)
Here, calculated value of Z is greater than table value. So, it
can reject the null hypotheses and accept the alternative
hypothesis, There is a positive relationship between job
satisfaction & employees turnover.
6.3.2. Hypotheses-3
Q. Do you think, “Employee’s turnover has impact on
private commercial banks?
Table 4: Respondent’s Opinion
Nature of responses No. of responses Percentage (%)
Agree 26 54.17%
Disagree 22 45.83%
Total collected data 48 100 %
H0= Employee’s turnover has no impact on private
commercial banks.
H1= Employee’s turnover has impact on private commercial
banks.
From the table out of 48 respondents, 26 agreed that
Employee’s turnover has impact on private commercial banks and 22 respondents supported H0.
The calculated value of Z is ׀-1.84׀ and table value is .׀-1.64׀
(By using the formula of- Z)
Here, calculated value of Z is greater than table value. So, it
can reject the null hypotheses and accept the alternative
hypotheses, Employee’s turnover has impact on private
commercial banks
7. Findings and Conclusion of the Study
There is a rational debate about the relationship between job
satisfaction and employees turnover. Our study concerned
about the “job satisfaction and employees turnover at private
commercial bank in Bangladesh”. Now a day it is the most
common sensitive issue in the area of banking sector. This
study benchmarks some relative common forces that can
interfere or influence the level of job satisfaction and
employees turnover tendency. Those factors are job security,
location of bank, employee’s autonomy, basic salary & fringe
benefits, career advancement opportunity, performance
appraisal process & evaluation, goodwill of the bank,
working environment, working schedule, peers relation
among the employees etc. We are able to find out the impactof those factors regarding the job satisfaction and employees
turnover at private commercial bank in Bangladesh. After
completing the study, we also identified that there is also a
competitive factor works behind the job satisfaction and
employees turnover in private banks. In this way, a bank
wants to retain their employees by increasing the essential
facilities than their competitors and also want to attract the
attention of skilled & experienced employee’s towards their
bank. So it is obviously another important factor relating to
job satisfaction and employees turnover tendency of private
commercial banks in Bangladesh. As a novice researcher we
can conclude our study regarding the particular issue of jobsatisfaction and employees turnover of private commercial
banks through the following recommendations:
• Private commercial banks should evaluate and update their
salary fringe benefit policy after a specified period of time.
• It should establish attractive incentive rewards program. In
this way, employees can feel that, how much the bank
recognized their contribution and become pleased about
their good work. It can increase the employee’s confidence
& commitment towards the bank.
• It should make a clear concept that their job is totally
secured like public commercial bank’s employees.
• It also should provide constant communication to the
employees, which facilitate employees to follow the roles
or process of organization to maintain favorable
relationship with their co-worker.
References
[1] Graham, G.H. (1982). Understanding human relations.
The individual, organisations, and management. Science
Research Associates, Chicago Inc.
[2] Hoppock, R. (1935). Job satisfaction. New York: Harper
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[3] NewStorm. J.W. & Davis, K. (1994). Organizational
Behaviour (8thed.). New York: McGraw Hill Book
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[4] Bigliardi, B., Petroni, A., and Ivo Dormio, A. (2005).
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[5] McCormick, E.J. & Ilgen, D. (1985). Industrial and
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[7] Schermerhorn, J.R., Jr., Hunt, J.G. & Osborn, R.N.
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[8] Muchinsky, P.M. (1993). Psychology Applied to Work
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[9] Moynihan, L.M, Boswel, W.R. & Boudreau, J.W.
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International Journal of Science and Research (IJSR), India Online ISSN: 2319-7064
Volume 2 Issue 6, June 2013
www.ijsr.net
[11] Bluedorn, A.C. (1979). Structure, environment and
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Author’s Profile
Md. Mizanur Rahman has been received Bachelor of
Business Administration (BBA) and Master of
Business Administration (MBA) degree from Rajshahi
University, Rajshahi. Currently he is a Senior Lecturer
of the Department of Business Administration,
Metropolitan University, Sylhet. His research interest fields are
General Educationat private university, Human Resources
Management, Strategic Management.
Md. Feroz Iqbal has been received Bachelor of
Business Administration (BBA) degree from Rajshahi
University, Rajshahi. Currently he is permanentlyliving in United State of America (USA) and being
involved himself as a student of Community College of
Philadelphia. His research interest fields are Management and
Human Resources Management.
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